Taxable profits of a business include the earnings of the company from trading activities, business investments, and profitable gains. For a company based in the United Kingdom, it is liable to pay corporation tax on profits made from the UK business and abroad. Whereas, if the company is not based in the United Kingdom but has branch offices in the UK, it is only liable to pay the corporation tax on profits earned from the UK activities.
The cut-off date for paying the HMRC corporation tax due depends upon the taxable profits.
What about the Interest rates for late and early payments?
The business must pay the corporation tax due or report to HMRC if no tax is due by the due date. This is normally nine (9) months and one (1) day after the end of the accounting period.
The business can pay the corporation tax in installments. In general, large companies can pay the corporation tax online by installments. A large company is defined as a company whose profits for an accounting period are more than £1.5 million at the end of the period. There are some exceptions. Some companies don’t have to pay by installments even if its profits exceed £1.5 million. This happens if either:
If any of these conditions apply, the company is liable to pay tax in full by the normal payment due date
It is imperative that a company pays the tax due to the HMRC by the cut-off date. The HMRC may charge interest if the tax is not paid on time. On the other hand, HMRC will pay interest if they receive the tax early. The time period allowed depends on how the payment is made:
Same day or next day
Three (3) working days
Five (5) working days
Note: Corporation tax cannot be paid by post. In case, the cut-off date falls on a weekend or on a bank holiday, the company must make sure that the payment reaches the HMRC one day prior to the holiday.
Companies can pay HMRC by CHAPS or BACS. Companies can use the 17-character corporation tax pay-slip reference for the accounting period they are paying for. The pay-slip reference number can be found on the pay-slip sent by HMRC, after the return was submitted or through the online HMRC account under view account -> accounting period.
|Account name||Sort code||Account number||CHAPS instruction|
|HMRC Cumbernauld||083210||12001039||CHAPS form - Cumbernauld|
|HMRC Shipley||083210||12001020||CHAPS form - Shipley|
Overseas account details are as follows:
|Account number (IBAN)||Bank identifier code (BIC)||Account name|
It is possible to make multiple payments using CHAPS – An online CHAPS form can be used to make a single payment for multiple companies for the same accounting period
Barclays Bank PLC
1 Churchill Place, London
United Kingdom E14 5HP
The online corporation taxation service can be used to file the organisation’s or limited company’s tax return with HMRC. Businesses can also use this service to file accounts together with Companies House. There might be occasion when the online service is slow during peak business hours. To use the HMRC Corporation Tax service companies need:
Business will need the Companies House password and authentication code, if accounts are filed jointly with the Companies House
Companies can create online account templates and can upload either:
HMRC webinars, email alerts and videos
Companies can get supplementary help and support from HMRC through videos, e-mails, and webinars. They include information on:
DNS Accountants is an experienced taxation and accounting firm in the United Kingdom, which offers entire range of corporation tax planning services for owner-managed businesses across the country. DNS helps businesses understand their tax structure and compute the amount of tax payable. The team at DNS comprises of Chartered Accountants, and accounting and MBA professionals that help clients with their tax credits and services such as bookkeeping, auto-enrolment, accounting, self-assessment, and payroll-management and business start-up. Employees / employers can use DNS Accountants online cloud-based accounting software, Nomisma Solution, helps businesses to have a better understanding of their corporation tax liability. The firm is very principled & delivers supreme customer service and client support.
DNS Accountants help clients focus on maximizing their wealth. It’s impractical to expect any small-business owner to have a comprehensive knowledge of tax and National Insurance rules, DNS Accountants work with businesses to work out their HMRC corporation tax dues and business tax planning.
Get the best advice on tax savings, accounting services, payroll, self assessment, VAT and more, whether you want to call us directly, request a call back or chat online with our experts, rest assured that we will always give you the best advice.If you have any questions, or would like to speak to us in person, please do get in touch. We're here to help.
DNS House, 382 Kenton Road,
Harrow, Middlesex, HA3 8DP
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